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Data Analysis Financial Statement Basics The Profit & Loss Statement Profit & Loss Statement Assessment

Sifan Wang
Sifan Wang
604 Points

SG&A expansion here refers to absolute or relativ? (sg&a)2/Revenue2 - (sg&a)1/Rev1 is absolute, how to calculate relativ

SG&A expansion here refers to absolute or relativ? 10972/141546 - 10763/140546 is absolute rate, how to calculate relativ rate?

1 Answer

Steven Parker
Steven Parker
218,692 Points

What's "relative" about it is that you are comparing one year to another.

And you have the right formula, but you just plugged in the wrong values from the table. The question is asking for the margin change from Year 2 to Year 3